Fraud Awareness

Preventing Fraud, Waste, or Abuse in Your Department

University management is responsible for establishing and implementing systems and
procedures to prevent and detect fraud, waste, or abuse. You can take a proactive
approach to preventing fraud by implementing the proper internal controls. For example:

Management at all levels of the University should review the information available
from the American Institute of Certified Public Accountants in the document Management Anti-fraud Programs and Controls: Guidance to Help Prevent and Deter Fraud. See the Management Anti-Fraud Document.

Please contact Audit and Consulting Services at (615) 898-2914 if you need assistance
in reviewing risks, processes, procedures, or controls or in providing internal control
training.

Reporting Fraud, Waste, or Abuse

The University is committed to the responsible stewardship of resources; and state
law requires all public institutions of higher education to provide a means by which
employees, students, or others may report suspected or known improper or dishonest
acts.

Whether you are part of departmental management, a faculty or staff member, a student,
or an interested citizen, University leaders encourage you to report known or suspected
dishonest acts by employees, outside contractors, or vendors.

What Should I Report? Dishonest acts, either known or suspected, should be reported, such as:

Theft or misappropriation of funds, supplies, property, or other University resources

Forgery or alteration of documents

Unauthorized alteration or manipulation of computer files

Improper and wasteful activity

Falsification of reports to management or external agencies

Pursuit of a benefit or advantage in violation of the University's conflict of interests
policy

Authorization or receipt of compensation for hours not worked

Think Before You Speak

Before making allegations of dishonesty, be sure of any claims. Such allegations can
seriously and negatively afffect the accused person's life and adversley affect the
working environment in the person's department.

Reporting Options

Several options are available to all University employees, students, and others for
reporting known or suspected dishonest acts. You may report your concerns to the
following:

If you are a supervisor, department head, or campus official and you receive a report
of a dishonest act, do not investigate, but rather contact Audit and Consulting Services
at (615) 898-2914 for further assistance.

Investigations

When the Office of Audit and Consulting Services receives allegations of dishonesty
or possible waste or abuse by an employee, outside contractor, or vendor, it is required
to conduct an investigation.

Management should NOT attempt to conduct investigations or alert suspected employees
of an impending investigation.

In an investigation, objectives include verifying the facts, maintaining objectivity
and confidentiality, determining responsibility, and recommending corrective actions
to help ensure that similar actions do not occur in the future.

Protection under State Law

State law provides protection for individuals by prohibiting discrimination or retaliation
of any kind against these individuals who report, in good faith, allegations of fraud,
waste, or abuse or for cooperating with auditors conducting an investigation.

A person who knowingly and willingly retaliates or takes adverse action of any kind
against any person for reporting alleged wrongdoing pursuant to the provisions of
TCA49-14-103(b) commits a Class A misdemeanor.

The internal audit working papers, including allegations of fraud, waste, or abuse,
and the individual reporting information to Audit and Consulting Services are confidential
under state law, unless subject to court action requiring disclosure. If there is
a separate legal obligation to investigate the complaint (e.g., complaints of illegal
harassment or discrimination), anonymity or complete confidentiality cannot be guaranteed.

Reporting Responsibility

Audit and Consulting Services has reporting responsibility to the Audit and Compliance
Committee of the MTSU Board of Trustees and the Comptroller of the Treasury. This
reporting relationship enables Audit and Consulting Services to independently and
objectively review matters involving any level of administration at the University.